Friday, April 21, 2006

I received a mailing today from the "Protect 21 Coalition" asking me to contact my legislators to tell them to oppose Senate Bill 1276, which it describes as "alcohol deregulation." The bill actually legalizes Internet-based sale of wine by Arizona wineries in the aftermath of the U.S. Supreme Court decision in Granholm v. Heald (which was combined with two other cases, including the Institute for Justice's case from NY, Swedenburg v. Kelly), which held that state regulation of Internet-based wine sales must be the same for in-state and out-of-state wineries. A 1982 Arizona law permits only in-state wineries to ship wine to restaurants and retail stores, and so is unconstitutional under that decision.

The Protect 21 website argues for a three-tier model of alcohol distribution (manufacturers, distributors, and retail sales) on the grounds that it is somehow better able to protect communities and prevent underage drinking. Actually, this model is an anti-competitive model held in place by regulations which benefit the middleman, whose role would otherwise disappear.

Their main argument is that allowing wine sales over the Internet will lead to underage drinking, despite the fact that purchases require credit cards and deliveries require a signature and ID verification, same as a retail store purchase. (For more on this argument and discussion, see this Jacob Sullum post at Reason magazine's blog.)

If you're in Arizona, contact your legislators and let them know that you'd rather not have your tax money spent to funnel money into the pockets of middlemen through archaic regulations, especially not to middlemen who hire lobbying firms to create fake grassroots efforts to promote their positions to the legislature.